Mon, 05 Sep 2011 10:27 CDT
The US economy has been in continuous recession as it combats massive national debt, a housing crisis and the declining strength of the dollar.
London - Wall Street braced for losses on Tuesday after world stock markets took a beating over fears that the U.S. economy was heading back into recession
Any troubles in the world's largest economy cast a long shadow over the markets, and a report Friday that the U.S. economy failed to add any new jobs in August
caused European and Asian stock markets to sink sharply Monday.
That jobs figure was far below economists' already tepid expectations for 93,000 new U.S. jobs and renewed concerns that the U.S. recovery is not only slowing but actually unwinding
. U.S. hiring figures for June and July were also revised lower, only adding to the gloom.
The full impact of the jobs report will hit U.S. markets on Tuesday, since trading there was closed Monday for the U.S. Labor Day holiday.
The jobs crisis has prompted President Barack Obama to schedule a major speech Thursday night to propose steps to stimulate hiring.
Until then, however, traders coming back from the U.S. holiday weekend will have little to hold onto. The uncertainty has already pushed many to pull out of any risky investments - such as stocks, particularly financial ones, the euro and emerging market currencies - and pile into safe havens: U.S. Treasuries, the dollar, the Japanese yen and gold.